Amongst criticism that it’s not keeping pace with updating connectivity, the National Grid has announced £4.6bn profits. With record levels of renewable energy being produced each year in the UK, calls are growing for the National Grid to update its waiting list system for projects connecting to the grid, which has meant some projects are waiting 15 years. Energy companies have taken issue with the fact that projects with investment backing and planning permission are forced to wait behind projects that aren’t likely to go ahead at all. The knock on effect of this is slowing investment in the renewable energy sector and a decreasing likelihood of the country meeting its climate targets.
“I think everyone is starting to recognise the scale of the transformation that is going to be required. We need a much more agile regulatory framework.” said John Pettigrew, CEO of National Grid. He agrees that the current first-come-first-served waiting list system is out-dated.
Compounding this, a recent report has found that were the UK to increase its renewable energy production by 50% it could make billions as a leading exporter. The country has great potential to decarbonise and to help others do the same. Very recently, on the 4th January, 87% of the UK’s electricity came from zero carbon sources.
The UK has ambitious carbon reduction targets, aiming for the grid to be carbon free by 2035. Without urgent changes in the National Grid it’s likely this goal won’t be reached.
Ofgem, the energy regulator, has labelled the 10-15 year wait “unacceptable”. Concerns have been raised particularly around how these delays have affected investment in the UK, as the low-carbon energy sector attempts to attract projects despite the US offering $369bn in subsidies.
The National Grid’s electricity system operator (ESO) has shared a plan to ease the backlog and significantly reduce the wait time. Developers will be able to leave the waiting list without a fine, prioritising sites that store energy and tracking the speed of project progression. The ESO claims 70% of projects on the waitlist will be connected after 2026. Due to these changes, the company claims these projects will be able to bring forward their connection date by 2-10 years.
Ofgem found that in the current system 60-70% of high-voltage transmission schemes don’t get connected to the grid. Often these projects wait over 5 years to be given a connection date.
“Polite queueing may be in the very best of British traditions – but the first come, first served connections regime is not fit for purpose if we are to end fossil fuel power within 12 years.” said Jonathan Brearley, CEO of Ofgem.
The Issue of Storage
Along with the delays in connecting new projects to the grid, storage is a major issue with the UK’s electrical grid. As the country generates more and more green energy each year, and because much of the energy generation is weather dependent, the grid hits issues balancing the supply and demand that both fluctuate. Without long-term storage for renewable energy, we are forced to rely on fossil fuels when no alternative is available. In times of peak production we are beginning to hit a ceiling where the grid becomes overloaded and energy goes to waste.
Late last year, Cottingham, Europe’s largest battery storage system was opened near Hull. It is said to have the capacity for enough energy to power 300,000 homes for 2 hours. This is a good step towards updating the country’s storage capacity as it hopes to switch over to relying entirely on renewable energy in just over a decade.
According to the National Grid’s Future Energy Scenarios report, the UK will need 50GW-plus storage installed by 2050, in a best case scenario. The report lays out a series of possibilities for the grid in the coming years; falling short with only 22GW/60GWh of storage; system transformation where genuine societal change is established, consumers change their behaviour and updated infrastructure, with 40GW/165GWh by 2050; and finally, the best case scenario where 50GW of energy storage power and 200GWh capacity.
All the solutions to these problems are available. The National Grid, Ofgem and energy companies are poised to collaborate to develop a reliable system for generating, storing and distributing energy throughout the UK. If all goes to plan the country could lead the world in the area.
